First time leasing a vehicle. Located in Tennessee. Custom ordered the vehicle, waiting for it to arrive. I was given an estimate of the potential numbers, pasted below. In my initial research, all of the numbers seem legit given the current market (Jan, '22) but I can’t help but feel that the monthly lease payment is too high. Thoughts??
2022 Range Rover Evoque - Base model with upgraded package/features
Estimated Monthly Lease Payment: $774
$47,873MSRP (Do I have room to negotiate?)
10k miles
36 month lease
$0 Down/No trade-in
$3,350 Taxes
$102.50 Local business fee
$499 Doc Fee
$97.50 Tags
.0012 MF (This seems high compared to other inquiries i’ve read, but is this reasonable for 2022?)
56% Residual Value
4 year warranty and 2 year maintenance package
No other fees or rebate offers presented at this time. I assume the only impactful ways to lower the monthly fee is to get a better MF? Or potentially negotiate the Cap Cost?
Have you confirmed MF and Residual Value for your zip code on the Edmunds Forum?
Is the maintenance package included at no charge? If not, what is the cost?
You can always sell a car that is financed, and not have to worry about expensive maintenance costs once the warranty expires.
No. MSRP is set by the manufacturer. The dealer can always add a market adjustment fee on top of it. What is your sale price?
A few pieces of advice:
I would strongly recommend reading leasing 101: EDITORIAL | LEASEHACKR. It breaks down the basics around leasing.
If you are not married to this car, find another car that leases better. You can search broker deals in the “Marketplace”.
If you want this car, do not lease it. As @wantingadeal stated, financing it over 72 months might be the “best” option. You can always sell it after 4 years or before the manufacturer’s warranty expires.
The point of comparing to a 72 month loan isn’t to say that you’ll keep the car for 72 months. It’s to say that you’d be better off getting a 72 month loan and simply selling the car after 3-4 years when you’re done with it, as mentioned with no restriction on timing or mileage. It’s a measurement of whether leasing is worth it. If the monthly $ is even for a loan, you should often do the loan.
As for the prepaid maintenance, it’s never “included” – they’re charging you for it, and just baking it into the price. Get a breakout of how much they’re charging you. Prepaid maintenance plans are a fine idea (I have one on my Mercedes) if you just want the worry-free experience and to maintain at the dealer, but you need to know what it’s costing you. And, only 2 years of maintenance for a 3 year lease? If you’re gonna go prepaid maintenance, might as well have it match your lease term.
Thank you for this info. I will look more into the maintenance package, but the cost is not included on any of the paperwork. It truly sounds like it comes standard.
Thank you for your help. To answer your questions:
I did reference the Edmunds forum. Not for my specific zip code, but the MF and RV seemed to be on par.
The 2 maintenance package (for basic maintenance) appeared to be included standard at not additional cost.
I was also leaning toward a lease to make the “selling” part of the vehicle much easier. I’m not too worried about the mileage since I work from home and would have another vehicle to use if need be. I average 8k miles/yr right now.
Since I built the vehicle online, they are only charging me MSRP.
Do you think this is because of the higher MF? I’m less concerned about overall cost, and more concerned about over paying. Just because I can afford it, doesn’t mean I should. But this has been my dream car for years and I held off until now.
Basically, in this market the buyer has little-to-no ability to negotiate either a discount off of MSRP or a discount in MF. That makes it really hard to recommend many leases nowadays.
On this forum, you’re going to find a lot of pushback anytime someone is asking for advice on leasing a car at MSRP. Especially for a luxury car (which typically leases poorly by default), and doubly so for a completely mass-market non-limited model like a base Evoque.
Lease “hacking” revolves around getting discounts off of MSRP (among other things) in order to make the lease a better financial decision than buying. Right now, when people are leasing at MSRP with no other discounts to be found, financing on a long term can make more sense. Especially with loan interest rates that are very low.
So it’s not that the above deal is “bad” necessarily – it seems like you’re for the most part getting a by-the-book default Range Rover Evoque lease. It’s just that by the standards of folks on this forum, it’s a very weak deal. Leasing a sub-$50k car at 36/10k for nearly $800/mo gives LH members heartburn.
The financing delta (APR-based finance costs vs MF-based rent and acq combined) is just one piece.
Another is the high resale value of model year 2020+ cars which benefits the owner vs a lower RV on a lease which is a negative for the consumer (and one by one all lessors are going to close the loophole where lessees can take all that equity).
It was giving me heartburn as well. I appreciate this breakdown as I am new here.
I also felt like I was getting a straight forward “by-the-book” deal, which is why I felt puzzled that the payment was so high compared to other deals I had reviewed on here.
I assumed leasing was the best option since I do not plan to keep this vehicle for more than a few years, but perhaps purchasing is the best route in this case.
The OP isn’t just going to blindly take this lease deal. Maybe they’ll buy it, maybe they’ll wait. But when someone says it’s their dream car there’s no need to shit on it.
you “could” save about $200-300/mo then vs now